Texas Real Estate Agency Book

	About the Authors	vi
	Acknowledgments	vii
	Preface	viii
Chapter 1	Agency Concepts	1
	What Is Agency?	2
	Roles People Play in Agency Relationships	2
	Client or Customer?	4
	Why Study Agency?	4
	The Real Estate License Act, the Texas Real Estate Commission, and the Licensee	8
	Summary	9
	Key Points	9
	Suggestions for Brokers	10
	Suggestions for Associates	10
	Quiz	11
	Discussion Questions	12
Chapter 2	Basic Agency Relationships, Disclosure, and Duties to the Client	13
	Agency Defined	14
	Classifications of Agency	14
	Fiduciary Duties and Responsibilities	16
	Summary	29
	Key Points	30
	Suggestions for Brokers	30
	Quiz	31
	Discussion Questions	33
Chapter 3	Disclosure and Duties to Third Parties	34
	Duties to Others (Third Parties)	35
	Avoiding Disclosure and Misrepresentation Problems	35
	Material Facts	40
	Stigmatized Properties	44
	Summary	51
	Key Points	51
	Suggestions for Brokers	52
	Quiz	53
	Discussion Questions	54
Chapter 4	Creation and Termination of Agency	55
	How and When Agency Is Created	56
	Important Issues	64
	How Agency Is Terminated	68
	Duties of Agency That Continue	71
	Summary	71
	Key Points	72
	Suggestions for Brokers	72
	Quiz	73
	Discussion Questions	74
Chapter 5	Seller Agency	75
	Express and Implied Agreements	76
	Listing Agreements	77
	Benefits of Seller Agency Relationships	89
	Approaches to Representing Sellers	91
	Exclusive Seller Agency	92
	Nonexclusive Seller Agency	96
	Disclosure Issues	98
	Summary	100
	Key Points	101
	Suggestions for Brokers	101
	Quiz	102
	Discussion Questions	104
Chapter 6	Subagency	105
	Establishing Status: Subagent or Buyer's Broker?	106
	Creation of Subagency	106
	Liability and Ethics	113
	Deciding on Subagency	116
	Summary	120
	Key Points	120
	Suggestions for Brokers	121
	Quiz	122
	Discussion Questions	124
Chapter 7	Buyer Agency	125
	Deciding to Represent the Buyer	126
	Myths about Buyer Agency	128
	The Creation of Buyer Agency	128
	Benefits of Buyer-Agency Relationships	137
	Fee Arrangements	143
	Written Notification of Compensation to Broker	151
	Procuring Cause	152
	Purchase Agreement	152
	Buyer's Broker Disclosures	158
	Summary	159
	Key Points	160
	Suggestions for Brokers	160
	Quiz	161
	Discussion Questions	162
Chapter 8	Representing More than One Party in a Transaction: Dual Agency and Intermediary Brokerage	163
	The Path from Dual Agency to Intermediary Brokerage	164
	Representation of More than One Party in a Transaction	164
	Former Statutory Dual Agency Rules in Texas	167
	S.B. 489 and Intermediary Brokerage	168
	Concerns Related to Intermediary Practice	181
	Nonresidential Intermediary Applications	182
	Intentional versus Unintended Dual Representation	184
	Summary	194
	Key Points	195
	Suggestions for Brokers	195
	Quiz	196
	Discussion Questions	197
Chapter 9	Single Agency	198
	Practicing Single Agency (Nonexclusive)	198
	Counseling Sessions Prior to Engagement	200
	Advantages and Disadvantages	201
	Summary	202
	Key Points	203
	Suggestions for Brokers	203
	Quiz	204
	Discussion Questions	205
Chapter 10	Clarifying Agency Relationships	206
	Disclosure Policy	206
	Developing a Company Policy	214
	Summary	216
	Key Points	218
	Suggestions for Brokers	218
	Quiz	219
	Discussion Questions	220
Chapter 11	Employment Issues	221
	Employment Relationships Between Brokers and Principals	222
	Employment Relationships Between Brokers and Associates	222
	Employment and Compensation of Personal Assistants	227
	Employment Relationships Between Brokers and Subagents	227
	Other Compensation Issues	228
	Summary	229
	Key Points	229
	Suggestions for Brokers	230
	Quiz	231
	Discussion Questions	232
Chapter 12	Deceptive Trade Practices and Consumer Protection Act	233
	Fraud versus Misrepresentation	234
	Deceptive Trade Practices and Consumer Protection Act	234
	Damages	246
	Defenses	247
	Ethical and Legal Concerns	249
	Summary	250
	Key Points	250
	Suggestions for Brokers	251
	Quiz	252
	Discussion Question	253
Chapter 13	Putting It All Together	254
	Preventive Brokerage	254
	Subjects To Discuss at the Listing Presentation	256
	Buyer's Broker or Associate	260
	Other Considerations	261
	Using Rehearsed Dialogue	266
	Risk Management	269
	Summary	269
	Key Points	270
	Suggestions for Brokers	270
	Quiz	271
	Discussion Questions	273
	Appendices
A.	Selected Texas Statutes and TREC Rules	274
B.	Questions and Answers Regarding Disclosure of Agency and Intermediary Practice	290
C.	Agency Cases from 50 States	304
D.	Ethical and Legal Responsibilities	328
	Glossary of Key Terms	338
	Index	342